Australia's United Group eyes U.S. bonds-source

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 SYDNEY, May 12 (Reuters) - Australian construction and
engineering firm United Group Ltd (UGL.AX: Quote, Profile, Research) is planning to raise
long-dated debt in the U.S. private placement market, a market
source said on Monday.

 The firm is looking for around $100 million in what would
be its second debt raising in the U.S. following a private
placement in 2006.

 ANZ and JPMorgan, who are arranging the offer, declined to
comment.

 The U.S. private placement market has been a popular source
of funds for Australian and New Zealand companies looking for
long-dated debt.

 New Zealand dairy giant Fonterra Co-operative Group Ltd and
Australian steel maker Bluescope Steel Ltd (BSL.AX: Quote, Profile, Research) are also
looking to raise debt in the same market.

 Typical buyers of private note placements are U.S.
insurance companies keen on long-dated paper to match their
assets.
 (Reporting by Cecile Lefort)